Fossil energy – Shell onshore
In what would be a potentially massive move, Shell is reportedly considering selling its entire stake in the US Permian Basin and such a move could be worth in excess of $10 billion.
The US Energy Information Administration anticipates Permian oil production will average 4.6 million barrels per day in June, the highest level since March 2020.
Increased prices and the heating up acquisitions market could appeal to Shell, which has set a zero emissions goal by 2050 and had an estimated net debt of more than $71 billion at the end of the first quarter.
Shell owns approximately 260,000 net acres in the Permian, all located in the state of Texas.
It accounts for approximately 6% of the company’s net oil production although its production in the Permian has dropped from approximately 250,000 bpd in 2020 to 193,000 bpd today.
Shell has been an active player in the Permian since 2012, when it purchased a $1.9 billion stake in a joint venture with Anadarko Petroleum from Chesapeake Energy.